Time Vault Pools
The most common question people ask is where does the upfront yield come from?
Ultimately, Time Vaults use multiple methods of "Pools" to make upfront yield possible. Here are three of the current most used pool types that enable upfront yield.
Yield Pools
Liquidity Pools
Boost Pools
Example #1: Yield Pool
How it works:
When Time Vault begins generating yield from it's yield source (Aave, Lido, etc), the yield is redirected into a "Yield Pool"
The only way to get the yield out of the Yield Pool is by burning TBTs
The amount of yield you can withdraw from Yield Pool is proportional to a user's ownership of TBTs
For example: If a user owns 10% of all TBTs from this Time Vault, they have the rights to burn and redeem 10% of all yield in this Yield Pool
Overview:
Available Yield: Generated from previous stakers principal
Yield Claim: Burn TBTs
Pro: Creates perpetual available yield source
Con: Takes time to jumpstart and accumulate.
Example #2: Liquidity Pool
How it works:
Individuals can add liquidity to TBT tokens
For example: ETH/TBT
When a user mints TBTs from a Flashstake, the TBT tokens are sold into this Liquidity Pool.
In this model, LPs are providing this upfront yield so they can earn trading and potentially liquidity mining fees.
Overview:
Available Yield: Generated from TBT liquidity providers
Yield Claim: Swap TBTs
Pro: Creates liquidity for TBTs
Con: Must attract LPs
Example #3: Boost Pool
How it works:
Anyone can deposits money directly into a Boost Pool
For example: Blockzero Labs deposits $1000 USDC into the Aave v3 Time Vault
When a user mints TBTs from a Flashstake, the TBT tokens are burned to redeem USDC from the Boost Pool
In this model, anyone can subsidize the cost to jumpstart a Time Vault
Overview:
Available Yield: Donated by person or entity
Yield Claim: Burn TBTs
Pro: Easy to start
Con: Donation is an expense
Last updated